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jsanterre50
Level 2

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Hello! 

 

I am in need of some help understanding Quickbook Payment workflows.  Here is the what I'm seeing and want to know how to correct it.  If you could give me a step by step on how to solve my problem I'd appreciate it. 

 

Client sends an invoice.   The client payment using the Pay now function either thru an ACH transfer or CC.    The payment goes into undeposited funds automatically.   However, in the invoice screen it shows as being paid and than deposited.  I see a bank deposit for the invoice and show the money went into the correct checking account and also says that the payment was QuickBooks Payment-CC/ACH and transaction processed.  I see the correct invoice that it was applied to.   My thought is that it should clear out of undeposited funds and now be applied to the invoice.   When I download the bank transactions I see a "Match" to the invoice.   

 

However, why are the funds still in undeposited funds?   I thought it should automatically clear the payment out of there since they Quickbooks Payment.    Now I have an astronomical undeposited funds balance.   How can I clear this out and prevent this from happening in 2019?   

 

Thank you!

17 Comments 17
MariaAlmaT
QuickBooks Team

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Hello there, @jsanterre50.

 

Thank you for the very detailed information you've provided to elaborate your concern. I have some information to share about QuickBooks Payments.

 

QuickBooks Online automatically records deposits and fees for your QuickBooks Payments transactions. Make sure your QuickBooks Payments account is configured to match and record automatically. You may check if the appropriate accounts are selected.

 

Here's how:

  1. Go to the Gear icon.
  2. Under Your Company, select Account and Settings.
  3. Choose the Payments tab.
  4. In the Chart of Accounts section, select the your accounts and save. Make sure the deposit account selected is the same account received payments get deposited to. It should also be the same account where fees are deducted from in real life.

Since you're using the Downloaded Transactions feature to connect to your bank, batches will automatically be matched. This is because your payments will automatically go into the Undeposited Funds account in QuickBooks Online as soon as you process them.

 

Once they settle and are deposited into your checking account in real life, the Batch Deposit will automatically be recorded and a separate fee withdrawal will be automatically recorded in Fees withdrawal account.

 

The following article contains an in-depth insights about this matter: https://quickbooks.intuit.com/community/Payments/Deposits-FAQ/m-p/185764https://quickbooks.intuit.co....

 

On the other hand, once you've processed and posted a customer payment to your Merchant Services account, it should automatically flow to the assigned account in QuickBooks Desktop. You'll then be able to see this transaction in both program.

 

To double-check and review the payments posted in your account, I recommend contacting our QuickBooks Payments Team to further verify your payment set up and workflow from Merchant Service to QuickBooks. They also have a secure environment to pull up your account.

 

Please visit this link to reach out support: Which Payments product do you need help with?

 

With this information, you should be able to work with you QuickBooks Payments. Let me know how this goes and don't hesitate to leave a comment below if you have other questions. I'd be glad to answer. Have a great rest of your day!

jenc1990
Level 1

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Did you ever  get this to clear up for you?  I have tried every resolution suggested on the forums and QBO still shows the ACH and Credit Card payments as undeposited.  They clearly have been deposited and every angle mentioned yet does not change?

 

Jenn

Alessandra_B
QuickBooks Team

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Hello there, @jenc1990.

 

I've checked that you have posted another concern on this thread: https://quickbooks.intuit.com/community/Payments/No-matter-what-resolution-I-have-tried-I-am-unable-.... And this has already been addressed by my colleague.

 

Hope you can respond to that thread so you and my colleague can work together. Thanks!

ellichristina
Level 2

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Hi there, was this issue ever resolved for you?  I am trying to troubleshoot this exact same issue with no success!

katherinejoyceO
QuickBooks Team

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Thanks for joining in this conversation, @ellichristina. I'm here to help ensure you're able to resolve your QuickBooks deposits concerns. 

 

We can manually deposit the QuickBooks payments and select the account you want to deposit the funds. Here's how: 

 

  1. Click the +New icon, then choose Bank Deposit under Other.
  2. From the Account drop-down menu, select the bank account you want to make a deposit.
  3. Enter the information as necessary, then click Save and close.

 

Once you receive payments, QuickBooks will follow your settings and will deposit payments to the bank account of your choice moving forward. 

 

I've included a detailed guide of our default accounts used when creating transactions or receive payments.

 

For future reference, I'd recommend reviewing some of our QuickBooks Payments FAQ. It has lists of articles that will help and answer most of your questions about payments processing and managing payments account. 

 

Let me know if you have additional questions. We're always delighted to help. 

flyingdogcoco1
Level 1

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

I can't figure this out! Please help.

 

So, The connected bank downloaded the payment for the invoice, there's a match to the invoice and when I add, it goes into "undeposited funds". I tried creating a new bank deposit as instructed above....this just created a duplicate when I click the invoices connected after saving. 

 

Please help. Can we start from the beginning.....right now, there are 3 invoices both paid via quickbook payment. Showing under "Review", 3 are listed, each with 1 record found, which is the payment received for the invoice. Where do I go with this so it can deposit into the bank and showing it deposited instead of "undeposited funds".

 

Thanks!

ShiellaGraceA
QuickBooks Team

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Thanks for joining us today, @flyingdogcoco1.

 

I'll share the steps on how you can match your payments. Since you already have transactions recorded in QuickBooks, all you have to do is to tick the Match link.

 

Let me guide you how.

 

  1. Go to Banking, then Banking at the top.
  2. Select the bank account you want to match the transactions.
  3. From the For review section, tick the boxes that says 1 record found. See the image below.
  4. Click Accept. You can also mark them one at a time and hit Match.

 

 

 

About the duplicate deposit, you'll want to delete them from the chart of account to correct your account. Just go to Accounting and then Chart of Account. From there open the View register link and delete the deposit you've created.

 

Check out this guide to learn more about matching downloaded transactions: Categorise and match online bank transactions in QuickBooks Online.

 

 

Also, you can browse this link in case you need help with other banking tasks. It has topics with articles that'll guide you along the way.

 

If you still have questions or concerns with bank accounts, please let me know. I'll be around for you. Take care and stay safe.

 

 

Heather-Starr
Level 2

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

I am having the exact same problem.  Matching directly from the For Review tab is what I did.... I can't believe we'd then have to manually create a bank deposit on top of that to clear out the undeposited funds.  I'm so confused!

Kevin_C
QuickBooks Team

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Great to have you joined this thread, @Heather-Starr. I'd be glad to clarify things about clearing up your undeposited funds account.

 

The Undeposited Funds account will hold your customer's payments until you decide to deposit them in a bank account. It serves as the default Deposit To account when you receive payments, use a payment item on an invoice, or enter a sales receipt.

 

If you want to know how payments get into the Undeposited Funds, see this article: Deposit payments into the Undeposited Funds account in QuickBooks Online.

 

That said, you can make a batch deposit for all of the payments from the Undeposited Funds to clear them out.

 

Additionally, I'm including this article that contains a complete reconciliation guide to help you optimize your reconciliation processes: Learn the reconcile workflow in QuickBooks. It contains troubleshooting instructions and ways to modify completed reconciliations.

 

Feel free to comment below if you need anything else besides managing your bank transactions. We’re always here to help you out. Have a good one!

LeslieNorell
Level 1

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Did this issue ever get a resolution? I'm having the same/similar issue. QB support hasn't offered much help. They either say it's working as designed, or they don't know. To be clear, the sequence of events are:

 

-Create and send invoice to customer

-Customer pays through QuickBooks online payments, ACH or CC

-A system created entry is made in the 'undeposited funds' for the deposit

-The deposit clears the bank account, the bank transaction shows up

-The bank transaction is automatically matched to the deposit

-The deposit remains in 'undeposited funds' However the undeposited funds balance is $0

 

Is this behavior working-as-designed? I would expect the transactions to not remain in 'undeposited funds'. This is quite confusing.

Giovann_G
Moderator

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Glad to have you here in the Community space, Leslie.

 

I'll share additional details on how QuickBooks categorize customer payments.

 

You can choose where to record payments on your chart of accounts if you connect QuickBooks Payment to your QuickBooks Online account. Following that, the payment deposit will be deposited to the correct bank account since you've specified the account where the payment is recorded from the Account and Settings.

 

Check your QuickBooks bank register to ensure the deposit was properly recorded. If it is, your UF balance should be zero. You can then match this deposit to your bank transaction to prevent double income. To answer your question is yes, this work as designed.

 

For your reference, see the resources listed below:

 

 

Use this article as a guide if you need to learn more about managing your bank transactions: Categorize and match online bank transactions in QuickBooks Online.

 

I'm always here to help you if you have further questions about other processes in QuickBooks. Have a great day.

LeslieNorell
Level 1

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

The payment account in 'Account and Settings' was set correctly to the my desired account. The deposit was recorded correctly on the bank transaction register.

 

Everything balances correctly, it's simply the fact that these Quickbooks payments transactions remain in 'undeposited funds'. I guess I'll take your word that that is working-as-designed. Though it is quite confusing behavior. I would expect them to be cleared from 'undeposited funds', like any other transaction is after it is deposited into the bank account.

mistyeilert1
Level 1

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

I have the same issue here.  ACH deposit is showing up on my register as "undeposited funds."  How do I move it over to accounts receivable and get it out of "undeposited funds?"

MJoy_D
Moderator

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

I can help you with clearing your undeposited funds' account, @mistyeilert1

 

You can only move your ACH deposit and all other transactions from the Undeposited Funds account by depositing them into your bank account. Once done, it'll be removed from your Undeposited Funds account. 

 

Here's how:

 

  1. Go to the + New and select Bank Deposit.
  2. From the Account dropdown, choose the account you want to put the money into.
  3. Select the checkbox for the ACH transaction.
  4. Click on Save and Close or Save and New.

 

For further instructions on how to record bank deposits and include bank and processing fees, check out this article: Record and make bank deposits in QuickBooks Online.

 

from here, you can run the Deposit Detail report to review past bank deposits. Here's how to run and customize this report: Customize reports in QuickBooks Online.

 

Let me know if you need further help to clear your undeposited funds account. Keep safe, and have a wonderful day!

ian67
Level 1

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Has anyone fixed this problem?  I have read the exchanges and still have a large balance from ACH payments and credit cards sitting in undeposited funds.  It is so unclear, it's like the intuit specialists don't understand the issue or are not good at describing how to fix the issue with their software!!??

 

Anyone to help clear the confusion would be helpful.

 

thanks

rysdams
Level 1

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Wouldn't this create a double deposit since Quickbooks has already deposited it into my account and it is just left hanging in Undeposited Funds? If I make a bank deposit, click the undeposited funds transaction (that Quickbooks already deposited into my bank automatically) and then deposit it, won't it be in there twice? 

 

Archie_B
QuickBooks Team

Quickbook payments from CC & ACH are going into Undeposited funds and yet show deposited in bank and still in undeposited funds.

Hi there, rysdams.

 

I'll share additional details about QuickBooks Payments and how Undeposited Funds works.

 

When you sign up for and connect your QuickBooks Payments account to QuickBooks Online, you can choose where payments should be recorded on your chart of accounts. This ensures that the payment deposit is deposited into the proper bank account.

QuickBooks handles invoice payments processed through QuickBooks Payments. You don't necessarily need to put these in Undeposited Funds (UF). However, if you need to combine payments made outside of QuickBooks Payments, you have to record a bank deposit to clear the UF account. Here's an article for more info: Deposit payments into the Undeposited Funds account in QuickBooks Online.

 

I've also included a resource that addresses frequently asked questions about QuickBooks Payment deposits: Common questions about payments deposits in QuickBooks Online.

 

If you have any further questions about other QuickBooks processes, I'm always available to assist you. Have a wonderful day.

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